The U.S. Congress is currently deliberating two significant bills aimed at establishing a federal regulatory framework for stablecoins:

1. The STABLE Act (H.R. 2392): Introduced in the House, this bill seeks to regulate the issuance and trading of dollar-backed stablecoins. It mandates that only permitted payment stablecoin issuers can issue such digital assets in the U.S., with strict requirements on reserve backing and regulatory oversight.

2. The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act): Passed by the Senate Banking Committee with bipartisan support, this act aims to create a comprehensive regulatory regime for stablecoin issuers, including requirements for 100% reserve backing with U.S. dollars and short-term treasuries.

Despite initial bipartisan backing, the GENIUS Act has encountered obstacles. Recently, nine Senate Democrats withdrew their support, expressing concerns over insufficient provisions addressing money laundering and financial system risks. Additionally, ethical questions have arisen due to former President Trump's reported $2 billion deal involving stablecoins issued by a Trump-affiliated firm, further complicating the bill's progression.

Senate Majority Leader John Thune has initiated steps to expedite a vote on the GENIUS Act, aiming to limit delays and advance the legislation swiftly. However, the recent Democratic opposition and internal party divisions, highlighted by Senator Chuck Schumer's call for caution and further revisions, suggest that the bill's future remains uncertain.

The outcome of these legislative efforts will significantly influence the regulatory landscape for stablecoins in the U.S., impacting both domestic and international digital asset markets.